Which one of the following measures is relevant to the systematic risk principle?
A)Theta
B)Beta
C)Standard deviation
D)Variance
E)Alpha

Question

Quizplus · Accepted Answer

The systematic risk principle is concerned with the risk that is inherent in the market as a whole, and beta is the measure of a stock's sensitivity to market movements. Therefore, beta is the measure that is most relevant to the systematic risk principle. The other choices, such as theta, standard deviation, variance, and alpha, are not directly related to the systematic risk principle.

Which One of the Following Measures Is Relevant to the Systematic